Selling A House Without A Realtor

It was a conversation my partner and I had been putting off for weeks. We had decided to sell our house, but when it came time to meet with real estate agents, something held us back. With all the online resources now available and stories from friends who had recently sold their homes, we wondered: could we sell the house ourselves and save thousands on commission fees? The thought was both exciting and terrifying. What about the paperwork? The negotiations? The legalities? After much deliberation, we decided to take the leap and list our home for sale by owner (FSBO). What followed was a whirlwind of photography sessions, pricing strategies, and open houses, but the financial and personal rewards made it all worthwhile. As more homeowners choose to sell without a realtor, we wanted to dive deeper into what it takes to sell a house on your own, the pros and cons of going the FSBO route, and whether it’s the right choice.

Why Homeowners Choose to Sell Without a Realtor

More and more homeowners are choosing to sell their homes without the help of a realtor. In 2022, 8% of all home sales in the United States were completed without the assistance of a real estate agent, according to a report from the National Association of Realtors (NAR) (1). This approach, often called “For Sale By Owner” or FSBO, has gained traction for several reasons.

Saving on Commission Fees

One of the biggest motivations for selling a house without a realtor is the potential to save money on commission fees. Typically, real estate agents charge around 5-6% of the home’s sale price, which is split between the buyer’s and seller’s agents. For example, on a house that sells for $400,000, the seller typically pays between $20,000 and $24,000 in commissions. By selling FSBO, you can eliminate the seller’s portion of the commission, saving thousands of dollars.

More Control Over the Sale

Selling without a realtor also gives homeowners more control over the entire process. From setting the price to scheduling showings and negotiating offers, FSBO sellers can make the best decisions for their situation. For some, this level of control is empowering, especially when they believe they know their home—and the local market—better than anyone else.

The Rise of Online Tools

The rise of online listing platforms like Zillow, Redfin, and ForSaleByOwner.com has made it easier than ever for homeowners to list their properties without the help of an agent. These platforms offer sellers access to a broad audience of potential buyers, professional photography services, and even pricing tools to help them set a competitive asking price. With readily available resources, some homeowners feel confident they can handle the selling process independently.

Steps to Selling a House Without a Realtor

While selling a house without a realtor can save money, it’s challenging. From pricing the property correctly to managing legal paperwork, there’s a lot to consider. Here’s a step-by-step guide to help homeowners navigate the FSBO process successfully.

Price Your Home Accurately

One of the most critical aspects of selling a home without a realtor is pricing it correctly. Set your price too high, and you risk the house sitting on the market for too long. Set it too low, and you might miss thousands of dollars in profit.

To determine an accurate price for your home, start by looking at comparable sales (or “comps”) in your neighbourhood. Sites like Zillow and Redfin offer tools to help homeowners find recent sales of similar properties in their area. Pay attention to factors such as square footage, bedrooms and bathrooms, and the property’s condition.

Additionally, consider paying for a professional appraisal. A licensed appraiser will objectively assess your home’s value based on location, market trends, and the property’s condition. HomeAdvisor says a home appraisal typically costs between $300 and $400, which can be a worthwhile investment to ensure you price your home correctly (2).

Prepare Your Home for Sale

Like any seller, FSBO sellers must ensure their home is ready for the market. Start by decluttering, cleaning, and staging the house to make it attractive to potential buyers. First impressions matter; a well-presented home is more likely to sell quickly and for a higher price.

Consider hiring a professional photographer or using high-quality photography equipment to take photos of your home. According to Redfin, homes with professional-quality images sell 32% faster than those without (3). Transparent, bright images can make a massive difference in attracting potential buyers when listing your home online.

Market Your Home Effectively

Marketing is critical when selling a home on your own. While realtors typically have access to the Multiple Listing Service (MLS)—a database that lists homes for sale—FSBO sellers can still get their properties in front of potential buyers through various platforms. Websites like Zillow, Realtor.com, and Craigslist allow homeowners to list their properties for free or a small fee.

In addition to online platforms, consider traditional methods like yard signs, word of mouth, and social media to spread the word about your listing. The more exposure your home gets, the more likely you attract serious buyers.

Hold Open Houses and Showings

Once your home is on the market, be prepared to schedule showings and potentially host open houses. Without a realtor to handle these responsibilities, FSBO sellers must proactively respond to inquiries and arrange times for prospective buyers to see the property.

Open houses are a great way to showcase your home to multiple buyers simultaneously, but presenting your property in its best light is essential. Ensure the home is clean, free of personal items, and well-lit. Create a welcoming atmosphere with light refreshments or brochures that provide crucial details about the house.

Negotiate Offers

One of the more challenging aspects of selling without a realtor is negotiating offers. It’s crucial to be prepared to discuss price, contingencies, closing costs, and the closing timeline. With an experienced realtor on your side, this can feel manageable, but understanding the basics of negotiation can help.

Know your bottom line: Before negotiating, clearly understand the lowest price you’re willing to accept.
Understand contingencies: Buyers often include contingencies in their offers, such as a home inspection or financing contingency. Be sure to understand these terms and how they can affect the sale.
Be flexible: While knowing what you want is essential, being flexible on specific points (like the closing date) can help keep negotiations moving forward.

Handle the Legalities and Paperwork

Selling a home involves a lot of paperwork, including the purchase agreement, disclosures, and title documents. Without a realtor to handle these documents, FSBO sellers must ensure everything is done correctly. According to the National Association of Realtors, legal issues are one of the top concerns for FSBO sellers, with 12% of FSBO transactions encountering problems related to contracts and paperwork (1).

It’s highly recommended that you work with a real estate attorney or a title company to ensure that all the sale’s legal aspects are handled correctly. An attorney can help draft the purchase agreement, review contracts, and guide you through the closing process.

Pros and Cons of Selling Without a Realtor

While there are clear benefits to selling a house without a realtor, there are also challenges to consider. Here are some of the main pros and cons:

Pros:

Cost savings: By avoiding realtor commissions, sellers can save thousands of dollars.
Complete control: Sellers ultimately control pricing, marketing, and negotiations.
Personal involvement: FSBO sellers are directly involved in every process step, allowing for a more personal connection with potential buyers.

Cons:

Time and effort: Selling a house is time-consuming, and without a realtor, all responsibilities fall on the homeowner.
Limited exposure: FSBO listings may not receive the same level of visibility as homes listed by real estate agents, particularly without access to the MLS.
Legal risks: Handling paperwork and contracts without professional help can lead to costly legal mistakes.

Statistics: How Do FSBO Sales Compare to Realtor-Assisted Sales?

While selling FSBO can save money, statistics show that homes sold with the help of a realtor often sell for more. According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, the median sale price for FSBO homes was $225,000, compared to $330,000 for agent-assisted sales—a difference of 32% (1).

This doesn’t mean FSBO is always a bad choice—many FSBO sellers successfully sell their homes without issues—but it does suggest that working with a realtor can often lead to a higher sale price, potentially offsetting the commission fees.

Conclusion: Is Selling Without a Realtor Right for You?

Selling a house without a realtor isn’t for everyone. It requires significant time, effort, and real estate market knowledge. Potential cost savings can be substantial for those willing to take on the challenge. However, working with a real estate agent might be a more prudent option for homeowners who are short on time or uneasy about navigating a sale’s legal and negotiation aspects.

Before deciding, carefully weigh the pros and cons and consider factors like your comfort level with negotiations, your knowledge of the local market, and your ability to handle legal paperwork. Whether you sell FSBO or with a realtor, being informed and prepared is the key to a successful home sale.